Ethereum (ETH) and much of the other large capitalization crypto assets received major corrections last day. According to CoinGecko, BTC has declined 2.5% in the last 24 hours alone, falling from $ 24,000 to $ 22,800 at the time of this writing. Ethereum alone has fallen 5% in the last 24 hours, dropping from previous highs to $ 610.
Despite the sharp drop in Ethereum prices, there are some altcoins that have largely been spared the decline.
The Ethereum-based Synthetix Network Token (SNX) has increased by 4% per CoinGecko in the last 24 hours. The DeFi-facing coin is currently trading for $ 6.20, just a few cents off recent highs near $ 6.40.
Synthetix can benefit from positive news regarding a scaling solution into which to integrate. SNX recently received a recommendation from a prominent, albeit controversial, cryptocurrency research group.
Related Reading: Here’s Why Ethereum’s DeFi Market May Be At The Bottom
Ethereum-based SNX holds key level
While SNX is active that day, this was not always the case. About 12 hours ago, the cryptocurrency saw a sharp dip below $ 6 as Bitcoin surged below $ 22,000 and other cryptocurrencies also lost key levels of support.
Analysts noted that a sharp drop in Ethereum-based crypto-assets would fall below the support level shown in the graph below:
“If you lose this, we’ll go into the $ 5.3-5.5 buy range. Would depend on how #Bitcoin reacts to a low area but could result in a solid invalidate. “
$ SNX #SNX – H1
If you lose this we’ll go to the $ 5.3-5.5 buy range.
Would depend on how #Bitcoin reacts to a low range but could do a solid invalidate https://t.co/cOKAGPzGmr pic.twitter.com/k3rng4COYX
– Pierre (@ pierre_crypt0) December 21, 2020
However, analysts fear that if Ethereum continues its decline, altcoins will inevitably follow. As seen in October and on previous fixes, altcoins, which are largely based on Ethereum, struggle to keep up when ETH is falling rapidly.
Related reading: Tyler Winklevoss: A “tsunami” of capital is coming for Bitcoin
The SNX rally takes place amid positive news for the Synthetix ecosystem.
Optimistic Ethereum, a scaling solution developed by the Optimism team, appears to be nearing launch. This is important as Synthetix has teamed up with Optimism to port its application, or at least some parts of it, to the Optimistic Ethereum test network and then to the main network.
In the Optimistic Ethereum study / in the test network, Synthetix wrote earlier this month:
“The third phase of our Optimistic Ethereum study with @optimismPBC is live! In this phase we will test withdrawals from L2 to the L1 Goerli test network. L2 withdrawals are only available to SNX stakers who participated in the previous phase of the L2 testnet study. If you are one of these stakers, you must withdraw at least 0.01 SNX by Monday 7th December in order to receive rewards after the mainnet L2 launch. “
Synthetix should be higher when these scaling updates are introduced.
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Selected image from Shutterstock price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Synthetix (SNX) gains 4% despite a sharp drop in ETH prices